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La Gazette de L' État de Poudouchéry The Gazette of Puducherry
PART - I
➢ EXTRAORDINAIRE EXTRAORDINARY
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No. 100 Poudouchéry Vendredi 17 Mai 2019 (27 Vaisakha 1941)
No. Puducherry Friday 17th May 2019
GOVERNMENT OF PUDUCHERRY
LABOUR DEPARTMENT
No. 11740/Lab./AIL/T/2019/461.
Puducherry, the 14th May 2019.
ORDER
Whereas, the management of M/s. Puducherry Co-operative Sugar Mills Limited, Lingareddipalayam, Puducherry, has submitted an application in Form-O-3, dated 02-05-2019 to the Secretary to Government, Labour Department, Puducherry, seeking permission for extension of Lay off with effect from 11-05-2019 under section 25-M of the Industrial Disputes Act, 1947, read with rule 75(B) of the Industrial Disputes (Central) Rules, 1957;
Whereas, on perusal of the Lay off application, dated 02-05-2019 of the management, it is observed that the management has stated various reasons for seeking permission for Lay off as detailed below:–
[ 1637 ]LA GAZETTE DE L'ETAT [ PART-I 1638 1638 (i) The Mill is unable to get adequate stock of sugarcane for crushing due to non-payment of arrears of cane price to the tune of ` 21.07 crores payable to growers.
(ii) The financial supports provided by the Government has decreased from ` 19.93 crores (2014-15) to ` 7.43 crores for the year 2016-17 and for the current year no budgetary allocation has been made by the Government.
(iii) The apex Co-operative Bank restricted the credit limit to ` 9.25 crores which is still over due and no interest was paid for the principal amount.
Therefore, it is difficult to get further loan from them.
(iv) Production of sugar in the Mill is declining year by year whereas, Mills overheads and establishment cost remain same.
(v) The Mill's Bank Account and vehicles were freezed by the EPF Organization for an amount of ` 1,150.60 lakhs.
(vi) The power supply of factory was disconnected on 22-11-2017 due to non-payment of electricity charges of ` 40 lakhs.
(vii) Sale order for molasses is pending due to Bank attachment.
(viii) Salary and Lay off wages from March 2017 to March 2019, bonus, gratuity, EPF, cane cess up to March 2017, purchase tax @ 14.5% on FRP up to 2016-2017, Sales Tax and harvester rent to Agriculture Department up to 2016-2017 for an aggregate amount of ` 2,292.49 lakhs has to be cleared.
(ix) Salary recovery dues towards Staff Credit Society, Employees Credit Society and PCSM Employees' Stores to an extent of ` 388.91 lakhs are yet to be discharged by the Mill.
(x) The accumulated loss as on 31-03-2018 is ` 218.53 crores.
Whereas, on summarizing the above reasons, shortage of sufficient quantity of sugarcane for running the Mill and to mobilise the working capital are the reasons for the proposed Lay off;
Whereas, on examination of the application, it is found that the management has applied Lay off only for regular employees who are working throughout the year in the industry and their application is in accordance with the Industrial Disputes Act, 1947;
Whereas, the management has sought for permission for Lay off due to shortage of raw materials, since, the Sugarcane Growers Associations are not willing to supply sugarcane unless they are paid the arrears for the cane supplied and there is acute shortage of working capital and it is found that there is shortage of raw materials for running the factory;
Whereas, eventhough, the Government of Puducherry is holding 95% share capital, the factory administration is purely independent in nature and the enquiry under Industrial Disputes Act, 1947 is statutory one;
PART-I ] LA GAZETTE DE L'ETAT 1639Whereas, it is observed that there is sufficient ground on the part of the Management for seeking Lay off on account of shortage of raw materials to run the factory;
Now, therefore, in exercise of the authority delegated vide G.O. Ms. No. l77/80-LAB., dated 1st September, 1980 of the Labour Department to exercise the powers conferred by the sub-section (1) of section 25-M of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), the Secretary to Government (Labour) hereby grant extension sought for by the management, M/s. Puducherry Co-operative Sugar Mills Limited, Lingareddipalayam, Puducherry, to Lay off 93 workmen as defined under section 2(s) of the Industrial Disputes Act, 1947 (Central Act 14 of 1947) with effect from 11-05-2019 to 10-11-2019 for six months.
(By order)
E. VALLAVAN,
Commissioner of Labour-cum-
Additional Secretary to Government (Labour).
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